T-Bills Archives - Page 2 of 3

04 Dec

T-bills Auction: Interest Rates Return To Upward Trajectory; Government Misses Target By 30%

Wontumi1Business364-day, 91-day, BoG, T-Bills

Interest rates returned to upward trajectory for the first time in a month, as the government continued to borrow heavily on the money market to finance its expenditure. According to auction results by the Bank of Ghana, the rate on the 91-day T-bill went up marginally to 29.56% from the previous week’s 29.49%. That of the 182-day bill also surged to 31.76% from the preceding week’s 31.75%. The one-year bill also increased by 21 basis points to 33.44%. Meanwhile, the government accepted all the bids for the treasury bills tendered to the tune of ¢3.917 billion. Its ambitious target of…

27 Nov

T-bills: Interest Rates Fall For 3rd Week Running; Government Gets ¢5.008Bn

Wontumi1Business182-day bill, 91-day bill, BoG, T-Bills

Interest rates fell for the third week running as demand for Treasury bills surged on the money market. According to auction results by the Bank of Ghana, the government secured nearly 40% oversubscription of the T-bills sale. The interest rate on the 91-day T-bill dropped marginally to 29.49% from 29.74% the previous week. The same could also be said about the 182-day bill as the rate went down to 31.75% from the preceding week’s 31.87%. That of the 364-day bill also declined to 33.23% from 33.46% previously. Meanwhile, the government received ¢5.008 billion from the sale of the T-bills, ¢1.42…

06 Nov

T-Bills Auction: Interest Rates Up For 36th Week Running; Government Records 33% Oversubscription

Wontumi1Business182-day, 364-day, 91-day, BoG, Interest Rates, T-Bills

Interest rates went up for the 36th week running as the increasing cost of borrowing will bite the government in the future. The yield on the 91-day T-bill went up to 29.96% from the prior week of 29.81%. That of the 182-day bill increased by 47 basis points to 32.14%. For the 364-day bill, it also surged to 33.70% from 33.42% the preceding week. The rising interest rates may bite the government as interest payments will shoot up. Meanwhile, the government recorded 33.01% oversubscription of the T-bills sale to the tune of ¢2.86 billion, according to the auction results by the…

23 Oct

T-bills Now Constitute Banks Largest Investment Portfolio; Increase To 51% From 17.8% – BoG

Wontumi1BusinessBoG, DDEP, Monetary Policy Report, T-Bills

Investment in treasury bills now constitutes banks largest investment portfolio the Bank of Ghana has revealed in its September 2023 Monetary Policy Report. According to the report, the share of T-bills grew sharply to 51.0% in August 2023, from 17.8% in August 2022. Instructively, the significant increase in the share of short-term investments can be attributable to limited trading on the medium-to-long term instruments because of the Domestic Debt Exchange Programme. Consequently, the share of long-term securities in total investments, declined significantly to 48.8%, from 81.9% over the same reference period. The share of equity investments remained negligible, moderating to…

09 Oct

T-Bills Auction: Interest Rates Hit 33.01%; Government Records 24.5% Oversubscription

Wontumi1Business182-day bill, 364-day bill, 91-day bill, BoG, Interest Rates, T-Bills

Interest rates shot up on the money market to hit 33.01%. This is coming despite the government recording a 24.5% oversubscription of Treasury bill sales at a lower target. According to the auction results from the Bank of Ghana, all the rates across the yield curve increased. Whilst the 364-day T-bill reached 33.01% from 32.85% the preceding week, that of the 182-day bill inched up to 31.21% as against 30.67% previously. The yield on the 91-day also went up by 0.69% to 29.19%. Analysts and market watchers are worried about the increasing domestic debt. Meanwhile, the bids tendered for the…

09 Oct

T-Bills Auction: Interest Rates Hit 33.01%; Government Records 24.5% Oversubscription

Wontumi1Business182-day bill, 364-day bill, 91-day bill, Interest Rates, T-Bills

Interest rates shot up on the money market to hit 33.01%. This is coming despite the government recording a 24.5% oversubscription of Treasury bill sales at a lower target. According to the auction results from the Bank of Ghana, all the rates across the yield curve increased. Whilst the 364-day T-bill reached 33.01% from 32.85% the preceding week, that of the 182-day bill inched up to 31.21% as against 30.67% previously. The yield on the 91-day also went up by 0.69% to 29.19%. Analysts and market watchers are worried about the increasing domestic debt. Meanwhile, the bids tendered for the…

04 Oct

T-bills Auction: Government Borrowed ¢13.07Bn In September 2023

Wontumi1Business182-day bill, 364-day bill, 91-day bill, T-Bills

The government borrowed ¢13.07 billion via treasury bills in September 2023 Importantly, the Treasury recorded strong demand for T-bills in the month under review, as investors submitted total bids of about ¢1.06 billion, higher than the gross target of ¢12.01 billion. The government, however, accepted ¢12.88 billion to refinance maturities of ¢11.23 billion. On a monthly basis, the 91-day and 182-day yields advanced to 28.50% (+148 basis points) and 30.68% (+206 basis points), while the 364-day jumped to 32.51% (+127 basis points). Analysts foresee yields sustaining their upward trend as investors seek to further narrow inflation-adjusted losses. Last week, the…

29 Sep

Government To Borrow ¢2.57Bn On September 29 To Refinance Maturing Bills

Wontumi1BusinessBoG, debt, T-Bills

The government will borrow about ¢2.57 billion today September 29, 2023, to refinance maturing bills worth ¢2.41 billion. This is coming after the country’s debt went up by about ¢6.3 billion between April and June 2023 to reach ¢575.5 billion. With improved liquidity and lower refinancing pressure, analysts expect the treasury to achieve the auction target. The Monetary Policy Committee (MPC) of the Bank of Ghana left policy rate unchanged at 30.00% on Monday September 25, 2023, citing the considerable decline in upside inflation pressures. The decision leaves the cumulative hikes for this year at 300 basis points. Databank Research…

04 Sep

T-bills Auction: Interest Rates Hit 31.65%; Government Achieves 15% Oversubscription

Wontumi1Business182-day, 364-day, 91-day, Interest Rates, T-Bills

Interest rates continued to surge on the money market, signaling an increasing cost of domestic debt. According to the latest results by the Bank of Ghana, interest rates went up across the yield curve. This is coming after the government forced rates down in March 2023, following the completion of the first phase of the Domestic Debt Exchange Programme. The yield on the 364-day bill went up by 0.41% to 31.65%. Again, the rate of the highly patronized 91-day bill shot up to 27.36%, from 27.02%. Similarly, the rate on the 182-day bill increased from a marginal 0.10% to 28.71%.…

30 Aug

T-bills Auction: Government To Borrow ¢3.06 Billion On September 1, 2023

Wontumi1Business182-day, 364-day, 91-day, T-Bills

The government will borrow ¢3.06 billion across the 91-day to the 364-day treasury bills on Friday, September 1, 2023. The proceeds will be used to roll over maturing bills worth ¢2.87 billion. Notwithstanding the favorable liquidity levels, analysts anticipate an uptick in T-bill yields as the steady increase in Opening Market Operations (OMO) bill yields and interbank interest rate pose further upside pressures. The government surpassed its auction target last week, as the market continued to experience sufficient liquidity. It accepted total bids worth ¢3.21 billion out of ¢3.23 billion bids tendered. The auction results exceeded the maturities by 16%.…